Attempting to inject life in the recession-hit market, Yamuna Expressway Industrial Development Authority (YEIDA) will be launching a residential plot scheme on August 3, 2015, offering 900 plots of 120 sq metre and 162 sq m, priced at Rs 17.04 lakh and Rs 23 lakh, respectively in the prime location of Sector 22D. This is for the first time that YEIDA is offering small, low-priced plots. In schemes launched in 2009 in sectors 18 and 20, 21,000 plots of 300 sq m each were allotted.
“We are expecting a huge response and have decided to give preference to those who can pay the total cost of the plot in 60 days from the date of allotment. The second preference will be given to those who will pay 50% within 60 days from the date of allotment and the remaining 50% in two installments within a year with 12% rate of interest. Finally, preference will also be given to those who pay 30% within 60 days from the date of allotment and the rest of the amount in eight equal installments in four years with 12% rate of interest, says Arun Vir Singh, additional CEO, YEIDA.
Singh says the decision to launch this scheme has been taken keeping in mind the aspirations of the middle and lower income groups to own plots and build homes of their choice.
Development of areas along the Expressway has been envisaged to cater both to the needs of people preferring high-end, luxury accommodation and those looking for budget and affordable housing. The scheme is well-timed as market sentiments are not very strong and it can attract end-users and not investors and speculators.
Many property consultants say such affordable schemes should be launched to make Yamuna Expressway a preferred destination for budget housing. “Today, the USP of Yamuna Expressway is the wide variety of residential options at an affordable range. The prices of apartments start from Rs 2,800 per sq ft. Besides this, YEIDA has constructed around 7,500 flats in Sector 22D for the lower and middle income groups. The authority will start delivery from January 1, 2016. These are affordable, too, as a one BHK unit costs around Rs 10.8 lakh and a two BHK costs Rs 16 lakh. YEIDA’s plots cost Rs 14,200 per sq m, which is low when compared to realty prices in neighbouring areas such as Greater Noida. This is the only area which is still highly affordable. “Once the market recovers, prices here will appreciate very fast,” says Rakesh Sharma from Sri Niwas Properties, a local property agent.
Despite its promising realty profile, Yamuna Expressway has been hit adversely by frequent farmers’ protests and disputes related to land acquisitions. Due to continuous litigation, development work has been seriously hampered over a period of time. When asked how YEIDA can guarantee that possession will be given on time, Singh says, “Things have changed a lot since the hon’ble Supreme Court delivered its verdict in the Noida Extension matter and awarded 64% additional compensation to farmers. We have implemented the same formula here and asked the farmers that if they withdraw their petitions, the government will pay the additional compensation immediately. A lot of farmers have already accepted the formula and withdrawn their petitions. We hope that remaining farmers will also follow the suit. Slowly and gradually development work is getting back on track.”
About the Sector 22D plot scheme, where the YEIDA scheme has been implemented, Singh assures all homebuyers that there is not a single acquisition issue pending in any court. This sector is free from all litigation, land has been acquired and is in the Authority’s possession. “We can hand over possession within a few months of allotment of plots,” he adds.
Local property brokers and even allottees of YEIDA’s previous residential schemes agree that the new scheme will be better than all other earlier schemes because the Authority has taken care of land acquisition related issues in a better manner.
Safal Suri, president, Yamuna Expressway Residential Plot Owners’ Welfare Association, an organisation of hundreds of plot owners in sectors 18 and 20, says “The present scheme is better than the ones launched earlier as now the Authority first resolved the land compensation matter with farmers and then launched it. However, I feel that for overall development of the area, all compensation matters need to be resolved.”
The one question needed to be asked about the scheme, however is: Why would someone apply for a plot at the cost of Rs 14,200 per sq m under the new residential scheme in Sector 22D when plots are available at Rs 9,000 per sq m for resale in the old YEIDA schemes in sectors 18 and 20? YEIDA’s response is that the plots in the new scheme are smaller in size while in sectors 18 and 20 these are bigger and involve more costs.
“The per square metre cost of bigger plots is cheaper, but adding up all costs make them expensive. In sectors 18 and 20, the minimum plot size is 300 sq m while in Sector 22D, the maximum size is 162 sq m. Further, the USP of the new scheme is that possession of plots will be handed over in a few months. Another reason why plots seem cheaper in sectors 18 and 20 is that the owners have yet to pay the 64% additional compensation. Once that’s done there won’t be any difference in the price of plots in the two schemes,” says Singh.